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Weak horse market

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A. Bohemian

03-22-2007 07:07:35




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Wonder how much of this is tied to people buying rural land on adjustable rate/interest only/sub-prime mortgages and being forced to sell?

It's happening to a good neighbor here. Six nice-looking animals will hit the market soon.

He's lucky. In our area the market for fifteen-acre horse farms is still way up due to unbelievable population growth, so even though he doesn't want to sell, he'll still show a good profit after he's paid his capital gains.

If I'm right about what he's got in the place, if he gets near his asking price he should make the equivalent of six percent per annum money over five years. Not a great return, but he beat inflation...

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OT: Horses and Farms..Jo

03-22-2007 07:16:05




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 Re: Weak horse market in reply to A. Bohemian, 03-22-2007 07:07:35  
Approx. 1939 my dad was able to purchase a 250 acre dairy farm which included 40 cows and 4 work horses, horse-drawn machinery and a tack-room full of harnesses, etc.

One year he ran outta food for the livestock.
That was in 1941. He elected to purchase a brand new 9N and rid himself of the horse problem. Long story short: He was able to keep the farm. The horses that I used to play with went by-by's. I asked'd my dad why did he get rid of the horses? He said "you can lead a HORSE to water, but, you cannot make the horse DRINK".

Have a good day.

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souNdguy

03-22-2007 07:13:54




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 Re: Weak horse market in reply to A. Bohemian, 03-22-2007 07:07:35  
I think it's alot of things.. One is the land boom/bubble-pop.. As you indicate.. lots people in the last couple years bought land that is now worth less than what they have it financed for.. and they are making payments on a loan that has a principle amount that is getting larger.. plus.. they cant afford to feed the animals when no grass is available.. plus fl went crazy with property tax and homeowners insurance increases int he last 2 years..

Soundguy

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A. Bohemian

03-22-2007 07:28:36




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 Re: Weak horse market in reply to souNdguy, 03-22-2007 07:13:54  
Quote: "plus fl went crazy with...homeowners insurance increases int he last 2 years.."

I bloody well bet. It's happened all along the Gulf Coast.

Brownsville and South Padre seem the least affected, but as one moves north and then east the problem starts to get bad in Port Arthur and gets worse toward New Orleans.

I can only imagine what it's like in Florida, where real estate was so much more expensive to begin with...

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souNdguy

03-22-2007 07:45:53




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 Re: Weak horse market in reply to A. Bohemian, 03-22-2007 07:28:36  
Prop tax and ins went thru the roof.. In some cases, the taxes went up OVER 2x+


Soundguy



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Forecast..John,PA

03-22-2007 14:31:13




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 Re: Weak horse market in reply to souNdguy, 03-22-2007 07:45:53  
Next to our little "Gulf-Cottage style house in Pensacola are rental properties. The rental houses are now experiencing property insurance rates in the thousands of $$ per year.

I hate to see the older neighborhood there slowly become a mecca of immigrants who will have 3 or more families living in one apartment. They, tho, are used to working 24/7. And collectively can afford the $1,500 a month rent that must be charged for each apartment so the land owner can still come out with something in his pocket.

John,PA

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BDT in Minnesota

03-22-2007 11:01:39




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 Re: Weak horse market in reply to souNdguy, 03-22-2007 07:45:53  
The taxes and insurance issues are causing concern up in my area also...I have totally failed to think of a workable solution to the problem..There is one couple in Fargo,ND that recently downsized their house..Their property taxes were over $500 a month, and the house was nice, but not a gold plated palace.I try not to waste money, but it would sure be nice to back up the time clock about fourty years..Not that I would have the answers, but I certainly would have done allot of things differently..We can hardly blame ourselves as individuals for the shape the rest of world is in, but, we can be a little more cautious when we open our checkbooks or go to the voting polls..My crystal ball fell off the shelf a few years ago..I used seven tubes of super glue to put it back together, but, it is no longer what it was cracked up to be... Back in 1999, I started my own trucking business. One truck, no hired help, licensed for the eight surrounding states, plus Manitoba and Sask...That brass ring was somewhat in sight. In the mean time, fuel went from $.90 per gallon to over $3.60 at times...The improvement in unit train performance has eliminated allot of the longer grain movements by truck. Just four miles from my place is a new unit train loadout faculity for grain...It is the first loop track facility of it's kind in the state of Minnesota..Three large locomotives come in with the unit train and remain coupled to the 100+ railcars..The locos pause as each car is pulled under the grain chute and filled..It works good for me to haul in to the new terminal from area elevators, but unfortunately, it is not steady enough to fully depend on..It is pointless to run a truck a longer distance without a back haul lined up...The back hauls of the past are found more and more on railcars also...The bottom line is, in my thoughts, that all that truck traffic was nuts in the first place..I have run the coast to coast loads before, and, I had my fill of that...I bought my own truck so I would not have to be a "Road Gypsey" as I call it..I don't mind being out a couple nites a week to keep things going...But I didn't buy a truck to live in it...There too, It costs me over seven grand a year for license, insurance, and permits before I turn a wheel...The only reason I ever got a commercial drivers license in the first place was so I could LEGALLY test drive any vehicle I worked on in the Dealership shop..The truck driving occurred when I needed a break from pulling wrenches..That was twelve years ago,,during those twelve years, I have never stopped buying tools and shop equipment..It the meantime, I have built a new shop big enough to work on large trucks...namely mine..Well, I am always joking that I am not going to give up my day job, but I would have to figure out what my day job really is?? I end up doing a customer repair job every time I turn around...I also joke about not knowing what I want to do when I grow up...Well, I turned 55 on Monday, still no answers..There are a pile of things that I enjoy...If I could stay home and work on old tractors, I would be in hog heaven. I have promised myself one thing, tho...over thirty years ago, I tore down an old barn on my property. It was 18 by 24 with an extention on one side...I want to replace that barn with a hobbybarn...There are about five people within a mile of me that have horses...I have a soft spot for horses, especially the miniatures...An 18 by 24 barn should be plenty large for a couple horses, a goat or two, some rabbits, ducks, a few chickens,two pigs, etc..I like animals, and am willing to do without something else to be able to have them...Of course, a new barn will increase the property taxes again, and we just had a increase...As far as the taxes and the economy, I will most likely remain lost...But it can be interesting how life goes around in circles. As far as the barn goes, it will be used for animals only, and no tractors.. I could use some ideas as what to do, and, "not do" on such a project.

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souNdguy

03-22-2007 11:14:10




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 Re: Weak horse market in reply to BDT in Minnesota, 03-22-2007 11:01:39  
If you are building a barn that will stall horses.. check some out in your area.. you will probably find a standard stall size based on breed.( around here in fl it is 10x10 or 12x12 stalls for average sized quarter horses.. and 6x12 for minis.. etc.) Plan your barn around the size and number of stalls you have. then add the rest of the stuff you want in there... then add in an unused space that will immediatly get used as soon as the last nail goes in..

Soundguy

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